Interpac Business and Migration Solutions Melbourne Australia

(December 9, 2010)

SOME 54,600 Australians found work in November in a strong, resurgent labour market, pushing down the jobless rate from 5.4 per cent to 5.2 per cent.

The Australian Bureau of Statistics labour force figures show full-time workers were the winners for the month, adding 55,100 jobs. Part-time jobs declined by 400 in November.

The strong jobs growth, which easily outstripped median market forecasts of a 20,000 increase, was matched by a rise in the participation rate to a record high of 66.1 per cent.

The unemployment rate dropped in all states except Tasmania, with the most populous jurisdiction, NSW, recording the sharpest fall - down 0.3 percentage points to 5.1 per cent - to outperform the national average.

The pace of jobs growth, at 3.7 per cent on an annualised basis, was the fastest since 2005, Westpac said in a research note.

“Going forward, such a brisk pace is unsustainable. We expect jobs growth to moderate - at least back to 3 per cent,” it said.

Economists had expected more subdued jobs creation after lacklustre retail sales data and sluggish growth in the September quarter national accounts.

CommSec chief economist Craig James noted, however, that hours worked had barely shifted - up just 0.04 per cent - despite the rapid expansion in employment.

“More people are getting jobs but plenty of us must also be working fewer hours and putting out less output,” he said.

“While hours worked are up 3.1 per cent on a year ago, productivity is up only 0.5 per cent. In short, we shouldn't celebrate too loudly.”

(Source:theAustralian)